Why invest in Multicap Fund at this high Market Level?

Very recently a post attracted my attention, which entails the growth story of Indian Economy in last 7 years.

In this post Mr John Chambers, a top American corporate leader and former Cisco CEO, said that he is looking at India as the next big economic force in Asia after China’s recent unpredictability and crackdown on tech. Following are figures showing how India on different economic parameters have displaced developed economies in ranking.  In the year 2014 the GDP of India was ranked on 10th is now ranking on 6th by displacing France, Brazil, Italy and Russia. Other parameters are likewise, Auto market ranking from 7 to 4, Electricity generation from 4 to 3, Mobile phone production from 12 to 2, Steel production from 4 to 2, Climate change Performance from 31 to 10, Global Innovation index from 83 to 46, WGI Governance Index from 103 to 49, etc. These figures give you opportunity to read between the lines.

Mr John Chambers further comments enthisiatically, which really boosted my moral and conviction in Indian economy, is “ Being the hottest Global Market in both the listed and unlisted worlds, India is literally on a Roll. If I am batting on 1 country in Asia, It’s India”, If batting on 2 countries in Asia, it’s India twice.”

As a man of financial industry I am definite to follow conviction of Mr John Chambers to employ my money to work for me. There is no other thought than to invest my money in India.

What Category of funds are available based on Market Capitalization? – There are so many companies listed in Indian share market? And there always remain a confusion in Indian common investor that which category of mutual fund Scheme to invest. There are majorly 3 categories of Mutual Fund are presented by Indian Mutual Fund companies as far as Capitalization of companies are concerned namely Large Cap Funds, Mid Cap Funds and Small Cap Funds. And they predominantly invest money in Large Cap, Mid cap and Small Cap companies respectively. Each category has its own management style, different Fund Managers and different performance over a period of times respectively.

What is Multi Cap Fund: – There is another very attractive Mutual Fund category available as per SEBI (Securities and Exchange Board of India) guidelines, that is Multi Cap Fund, which helps you to invest across all capitalization from Indian Share Markets. As per SEBI guidelines Fund Manager has to invest 25% money in Large Cap companies, 25% in Mid Cap and 25% in Small Cap companies and rest 25% based on opportunity available and cash.

HDFC Mutual Fund and Axis Mutual Fund and IDFC MF launched multi-cap schemes are now open for subscription. Moreover, Aditya Birla Sun Life Multi-Cap Fund and Kotak Multi-cap Fund were launched in May and September 2021, respectively. In the month Dec 2021, Multicap Funds from Indian Mutual Funds space garnered a big chunk of around Rs 10500 Cr. This shows the confidence of Indian Investors in this category. Reason why this category got attention of Indian investors, is its composition and helping investors to not to depend on only one or other capitalization-based schemes but to invest in all categories at the same time. No need to put pressure on mind to choose from Large, Mid and Small Cap schemes.

Indian Mutual Fund and Securities Market regulator SEBI has mandated mutual funds to maintain Multi Cap Fund separately in scheme portfolio. SBI Asset Management Company (SBI AMC) is set to launch a New Fund Offer (NFO) for SBI MULTI CAP FUND from 14th Feb’22 to 28th Feb’22. SBI AMC did not have this category of fund in its basket. SBI MULTI CAP FUND will be managed by Mr R Srinivasan, CIO of SBI AMC has been a star and very seasoned fund manager since long. Mr. R Srinivasan has a very long experience of fund management of about 28 years in industry. SBI SMALL CAP FUND, SBI FOCUSED EQUITY FUND, SBI EQUITY HYBRID FUND, SBI MAGNUM GLOBAL FUND, SBI FLEXICAP FUND AND SBI MAGNUM CHILDREN’S BENEFIT FUND are Flagship schemes managed by Mr R Srinivasan with SBI AMC.

Mr R Srinivasan: –  Currently the Head of Equity and personally managing a number of funds, R Srinivasan joined SBI Funds Management in May 2009 as a Senior Fund Manager; He has more than 28 years of experience in equity markets having worked with Future Capital Holding, Principal PNB, and Oppenheimer & Co. (later Blackstone), Indosuez WI Carr, and Motilal Oswal, among other firms. Srinivasan is a postgraduate in Commerce with an MFM degree from the University of Mumbai.

SBI EQUITY HYBRID FUND, SBI MAGNUM GLOBAL FUND are old mutual fund scheme that were launched in years 1995 and 1994 respectively and have performed well. They gave 17.85% and 23% CAGR return if one had invested 20 years back in these schemes respectively.

Here are 4 important reasons why you should invest in SBI MULTI CAP FUND: –

Multicap Investment has always been a good bet for investors. As we can see a very good growth story of Indian economy is waiting, it is right time to invest in SBI Multi Cap Fund at base NAV of Rs 10 Per Unit. This NFO is starting on 14th Feb, 22.

  1. Combining the power of diversification: – SBI MULTI CAP FUND offers an integrated uniqueness of the MULTI CAP fund category and High Conviction Analyst Portfolio thus combining the power of diversification at the portfolio level.
  2. Analyst High Conviction Ideas: – SBI Multicap Fund builds portfolio based on Analyst high conviction stock ideas generated by 15 sectors analysts. The aim to build robust portfolio is based on a process-oriented approach by analysts to arrive at the multiple best ideas to choose from.
  3. Unconstrained, sector agnostic approach: – SBI Multicap Fund Aims to identify opportunities through Active stock management with Bottom-up stock picking strategy Unconstrained, sector agnostic approach aims to look at the viability of businesses than the sector it operates in. Absolute return orientation towards investing with focus on investing in quality businesses with superior economics.
  4. Large cap + Mid cap + Small cap Fusion: – SBI Multicap is a blended portfolio (Large + Mid + Small) that aims to enhance the opportunity for higher alpha over the long term.

Its time to grab opportunity to invest in SBI Multicap Fund at NFO level at NAV Rs 10 per unit.

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